Get the money right on your first hire.
Free payroll Excel files, hiring documents and state-by-state steps for US business owners, written by a compensation and benefits practitioner.
Example: hourly employee at $24 an hour
- First 40 hours (40)
- $960.00
- Hours over 40 (time and a half) (4)
- $144.00
- Gross pay
- $1,104.00
Hypothetical adult nonexempt employee. Federal weekly rule only.
- Written by a compensation and benefits practitioner
- Official sources and check dates shown
- Hypothetical examples are labeled
Start with these articles
- 01Read
How to hire your first employee in New Jersey
Hire your first employee in New Jersey: registration, insurance, forms, time records, paycheck deductions, tax deposits and filings with a worked example.
- 02Read
How to hire your first employee in New York
Hire your first employee in New York: registration, insurance, forms, time records, paycheck deductions, tax deposits and filings with a worked example.
- 03Read
The True Cost of an Employee: Why $50,000 Costs More Than $50,000
The true cost of an employee starts with employer payroll taxes on top of salary. See how FICA, FUTA, state unemployment and workers' comp add up in 2026.
- 04Read
New Jersey Part-Time Overtime and Payroll Processing
Calculate New Jersey part-time overtime, set up payroll software, separate employee deductions from employer taxes, and check federal and NJ filings.
- 05Read
W-2 vs 1099: Why the Same Worker Can Get Different Answers by State
W-2 vs 1099 isn't one test. Follow one hypothetical bookkeeper through the IRS, DOL and ABC tests to see why the answer can change by state and business.
- 06Read
How to hire your first employee in the US: the federal steps, then your state
How to hire your first employee: the federal steps every employer follows, then what changes in California, New York, Texas and New Jersey. Checked Oct 2026.
- 07Read
Hire your first employee in California: pay and paperwork
Hire your first employee in California: registration, insurance, forms, time records, paycheck deductions, tax deposits and filings with a worked example.
- 08Read
Hire your first employee in Texas: pay and paperwork
Hire your first employee in Texas: TWC registration, insurance choices, time records, paycheck deductions, tax deposits and filings with a worked example.
- 09Read
How to start an LLC: CA, NY, NJ and TX before your first hire
How to start an LLC in the US: the federal steps every owner follows, then what changes in California, New York, Texas and New Jersey, with 2026 state costs.
- 10Read
Start an LLC in New Jersey: Filings and Owner Draws
Start an LLC in New Jersey with filing costs, registration, permits, owner draws and recurring reports. Separate default tax treatment from corporate elections.
- 11Read
Start an LLC in New York: Filings and Owner Draws
Start an LLC in New York with filing costs, registration, permits, owner draws and recurring reports. Separate default tax treatment from corporate elections.
- 12Read
Start an LLC in California: Filings and Owner Draws
Start an LLC in California with filing costs, registration, permits, owner draws and recurring reports. Separate default tax treatment from corporate elections.
- 13Read
Start an LLC in Texas: Formation, Tax Accounts and Owner Pay
Start an LLC in Texas with Form 205, an EIN, permits and separate business funds. Follow annual PIR reporting even at zero franchise tax, then plan owner pay.
- 14Read
Form I-9 Mistakes Small Businesses Make, and How to Fix Them
Find Form I-9 mistakes in dates, document requests, accepted editions and retention. Follow one employee from onboarding through honest corrections and storage.
- 15Read
Paid sick leave by state: CA, NY, NJ and TX payroll records
Paid sick leave by state for a first hire: CA, NY and NJ accrue 1 hour per 30 worked, but the first usable day differs. Texas has no state law.
- 16Read
Salaried Employee Overtime: Federal Tests and Pay Calculation
Do salaried employees get overtime? Often, yes. Salary is only one of three federal tests, and failing the others can cost back pay plus equal damages.
- 17Read
No Tax on Overtime: What Employers Must Change on 2026 W-2s
No tax on overtime changes 2026 W-2s: employers must report the FLSA overtime premium in box 12, code TT. Here's what changed and what to do by year-end.
- 18Read
How to Design Your First Employee Bonus Plan, Step by Step
An employee bonus plan needs a goal, rules, a formula, tax handling and an overtime check. Follow one small café's quarterly bonus from idea to paycheck.
- 19Read
ICHRA vs QSEHRA vs a Group Health Plan for Your First Employees
ICHRA vs QSEHRA vs a small group plan: compare who can offer each, the 2026 reimbursement caps, and what employees need, then choose by your situation.
- 20Read
1099 Paperwork for Freelancers: From the First Invoice to Filing
1099 paperwork for freelancers, step by step: collect a W-9, log every payment, apply the new $2,000 threshold, and file Form 1099-NEC by the deadline.
- 21Read
New Jersey Employee Costs and First-Year Cash Budget
Calculate New Jersey employee costs from a $20 hourly wage, employer taxes, insurance and equipment, then turn the annual budget into a payday cash plan.
- 22Read
How to Fix a Pay Transparency Job Posting ("Competitive Pay" Won't Cut It)
A pay transparency job posting needs a real pay range in NJ and NY, plus a benefits description in NJ. See a flawed sample posting and how to fix it.
- 23Read
Free Government Resources for First-Time Employers, in Reading Order
Free resources for first-time employers from the IRS, DOL, USCIS and your state, put in a sensible reading order so you know exactly which one to open first.
State by state
How four states differ for a first hire
Taken from the first-hire guide. Pick a state to see registration, workers' compensation, minimum wage and employer payroll taxes on $50,000 of pay.
State payroll-tax registration
- Registration trigger
- EDD within 15 days after paying more than $100 in a quarter
- Where
- EDD e-Services
- 2026 new-employer state contribution rate
- 3.4% unemployment + 0.1% training tax on the first $7,000
- State income tax to withhold
- Yes
Workers’ compensation and required coverage
- Required?
- Yes, from the first employee
- Additional decision
- Confirm insurer, effective date and employee notices
Minimum wage, leave and the work location
- 2026 minimum wage
- $16.90; some cities higher
- Paid sick leave
- At least 40 hours or 5 days a year, whichever is more
Payroll cost and the first payment
- Federal (Social Security, Medicare, FUTA (federal unemployment tax))
- $3,867
- State unemployment and related
- $245
- Total employer taxes
- $4,112
From the guide: Official sources checked: October 24, 2026; changed points rechecked October 28, 2026
Tool
How much does a 45-hour week cost?
Enter an hourly wage and the hours worked in one workweek. The estimator splits regular and overtime pay under the federal rule.
- First 40 hours$960.00
- 5 hours over 40$180.00
Free files
Payroll Excel, offer letters and onboarding documents
Download the payroll and time-clock workbook, or fill in the offer letter and onboarding documents in your browser. Nothing you type is sent anywhere.
Open the resources- Blank files, 10 employee example and Word SOP
- Offer letter, exempt (PDF)
- Offer letter, non-exempt (PDF)
- Onboarding information and employee policies (PDF)
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Essential official sites
Plain explanations with sources you can check
Jason Seo, SHRM-CP®, writes about hiring, compensation and benefits. Guides identify official sources and check dates, and distinguish hypothetical calculations from actual product use. Jason writes under a pen name and keeps employer information private.
